UPDATED RESOURCE ESTIMATES UNDERWAY
- Improved nickel/cobalt prices and positive market forecasts underpins resource update for Lynn Lake
- JORC Resource upgrade expected to be used in mining studies for a potential future, new mining operation
- Cobalt focus to add value to Resource work – cobalt historically produced, but not reported in resources, expected to add value to new Resource estimates
- Drill defined sulphide mineralisation not previously modelled to be included in estimates
Lynn Lake Project Summary
Lynn Lake, located in Manitoba, Canada (Figure 1), is a historically significant mining centre that was mined continuously for 24 years prior to closure in 1976. In 2015, Corazon consolidated the Lynn Lake nickel-copper-cobalt mineral field under the ownership of one company for the first time since mine closure and in doing so created a significant nickel-copper asset.
On 16th April 2015, Corazon announced an initial JORC Indicated and Inferred Mineral Resource Estimate for the Lynn Lake Project (ASX announcement 16 April 2015). Substantial drill defined mineralisation not included in this Resource remains within the Lynn Lake Project and the likelihood of defining additional resources or finding new deposits within the Lynn Lake Mining Centre, is considered very good.
Corazon’s recent activities at Lynn Lake have focused on the exploration of the Fraser Lake Complex (FLC)-, located just five kilometres southwest of the Mining Centre, where Corazon recently discovered a very large magmatic sulphide system. The most recent drilling, targeting magnetic geophysical highs, failed to intersect massive sulphides that typify the Lynn Lake Mining Centre. Subsequent analysis of these results has provided direction and targets for future drilling at the FLC.
Figure 1: Lynn Lake Project location within Canada
Lynn Lake Resource Update
Since consolidation of the Lynn Lake Project in 2015, Corazon has made substantial additions and corrections to the inherited drill hole database. This work has included holes testing mineral deposits incorporated within the 2015 JORC Indicated and Inferred Mineral Resource Estimates. As such, an update of the Resource is required, prior to any future mining studies being completed on the Project.
Independent experts are currently assessing and interpreting all available historical drill hole and mining data at the Lynn Lake Mining Centre for inclusion in the new, updated Resource Estimation. Given the large amount of historical data required to be incorporated in the Lynn Lake Resource update, which will include cobalt for the first time, it is now anticipated the new Resource Estimate will be released in the current quarter.
Cobalt Focus to Add Value to Lynn Lake Resource Work
Throughout Lynn Lake’s extensive mining history, cobalt was captured along with nickel and copper via simple standard flotation processing. Despite being a valued metal credit, cobalt was never systematically reported in historical drill assays, processing reconciliations or Resource Estimates and mining studies.
At its current metal price, cobalt represents a valuable credit not previously assessed in mining studies at Lynn Lake since mine closure in 1976. Recent assessment of historical work will, for the very first time, enable the inclusion of cobalt in Resource Estimations.
Drilling Overview – FLC and Lynn Lake
Corazon has systematically explored the Fraser Lake Complex – located just 5 kilometres south of Lynn Lake – since December 2016, and believes it has the potential to host significant nickel-copper-cobalt sulphide deposits. Corazon’s FLC activities have included drilling, ground geophysics, downhole geophysics and geochemistry.
Overall, the Company’s drilling to date has intersected broad zones of low-grade nickel-copper-cobalt mineralisation and identified a large “channel” of disseminated magmatic sulphide. The higher-grade massive sulphide feeder zone to this system has yet to be identified and the Company continues to work on determining cost effective methods to define such targets.
The most recent drilling at the FLC (ASX announcement 13 March 2018) targeted high-magnetic features generated from the modelling (inversions) of ground magnetic data. These targets were located on the margins of the Matric Trend, a high-chargeability IP anomaly generated from extensive magmatic sulphide mineralisation. This phase of drilling failed to intersect massive sulphides that typify the Lynn Lake Mining Centre. Subsequent analysis of these results has provided direction and targets for future drilling at the FLC.